What Are the Different Types of Telecommunications Regulations?

Decree No. 291 of the State Council of the People's Republic of China on September 25, 2000 Promulgated in accordance with the "Decision of the State Council on Amending Certain Administrative Regulations" of July 29, 2014

Order of the State Council of the People's Republic of China (No. 291)

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Liu Cai, Director of the Policy and Regulation Department of the Ministry of Information Industry

Management System of the Regulations

: Specific rules for operating telecommunications business. For how to enter the telecommunications business field, the "Regulations" establish eight major systems for operating management of the telecommunications industry, including operating permits, interconnections, and paid use of resources. "There are no rules and no way round." It can be said that these eight systems have established legal "rules" for operators and consumers, which constitute the main content and basic basis of China's telecommunications industry supervision at this stage.
(1) Telecommunications business license system. The "Regulations" stipulate that in order to operate telecommunications services, a telecommunications business operation license issued by the competent information industry department of the State Council or the telecommunications management agency of a province, autonomous region, or municipality directly under the Central Government (collectively referred to as the "telecommunications regulatory agency") must be obtained. The "Regulations" stipulate the conditions, procedures and acceptance authorities for applying for basic telecommunications business and value-added telecommunications business licenses according to the type of telecommunications business.
(2) Inter-network interconnection mediation system. The interconnection between telecommunication networks is not only a requirement for users to use telecommunications, but also a basic guarantee for the telecommunications industry to introduce competition. The "Regulations" stipulate that the market-leading operators must not refuse the interconnection and interoperability requirements made by other telecommunication service operators and private network operators. At the same time, they clearly specify the duties, requirements and requirements for administrative coordination and adjudication of inter-network interconnection disputes. program. Inter-network interconnection is first negotiated by the interconnected parties. If no agreement is reached within the prescribed time, either party can apply for coordination with the telecommunications regulatory agency. If coordination still fails to reach an agreement within the prescribed time, the coordinating authority may invite experts from related parties to conduct Openly demonstrate and propose interconnection schemes to enforce interconnection.
(3) Telecom tariff management system. The "Regulations" stipulate that telecommunication tariffs are priced by the enterprise, the government, and the government. In principle, corporate pricing will be gradually implemented for telecommunication services with sufficient market competition, government pricing will be implemented for telecommunication services with a natural monopoly trend, and government-guided prices will be applied for the remaining telecommunications services. To formulate telecommunication service tariff standards for government pricing and government guidance prices, hearings from various sectors of society should be adopted in the form of hearings.
(4) The system of paid use of telecommunication resources. Telecommunication resources refer to a limited number of resources, such as radio frequencies, satellite orbit locations, and telecommunication network code numbers, which are used to implement telecommunication functions. The "Regulations" stipulate that the state implements unified planning, centralized management, and reasonable allocation of telecommunication resources, and implements a system of paid use. The allocation of scarce telecommunication resources should gradually adopt auction methods. The telecommunication resources charging measures shall be formulated by the Ministry of Information Industry in conjunction with the State Council s finance and pricing authority, and shall be announced and implemented after being submitted to the State Council for approval.
(5) Telecommunications service quality supervision system. The quality of telecommunications services is of interest to the people, and the government must strengthen supervision and management.
(6) Telecommunications construction management system. The public telecommunication network is the social public infrastructure and the physical foundation for the information network of the national economy and social services. In order to realize the effective allocation and reasonable use of national resources and prevent unnecessary repeated construction, the Regulations stipulate that "the construction of public telecommunication networks, private telecommunication networks, and radio and television transmission networks should accept the overall planning and industry management of the State Council's information industry department ". "The construction of public telecommunication networks, private telecommunication networks, and radio and television transmission networks that belong to national information network projects or construction projects above the national limit shall be approved by the competent information industry department before being submitted for approval in accordance with the national capital construction project approval procedures." The "Regulations" also regulate the mutual relations that may occur in telecommunication construction with municipal construction, other infrastructure sectors, and other telecommunications enterprises from the height of the overall national interest.
(7) Telecom equipment network access system. In order to protect the interests of users, maintain the order of radio waves, and ensure the interconnection of telecommunications networks, the "Regulations" stipulates that "the state implements a network access permit system for telecommunication terminal equipment, radio communication equipment and equipment related to interconnection between networks." The above three types of equipment connected to the public telecommunication network must comply with the technical standards set by the state and pass the testing and certification of an organization recognized by the product quality supervision department of the State Council before they can formally apply to the information industry department for a network access license for the equipment.
(8) Telecommunications security guarantee system. In the era of promoting information network and developing the network economy, communication network and information security issues have become more and more important issues related to national economic and social security. The "Regulations" specifically listed seventeen prohibited acts of using telecommunications networks to engage in cybercrime or illegal activities. The "Regulations" stipulate that international communications business must be conducted through the International Communications Import and Export Bureau approved by the State Council's information industry department. The Regulations also stipulate the rights and obligations of telecommunication service operators, users and related institutions to maintain national network and information security.

Necessity of the Regulations

: The competition pattern requires competition rules. The "Telecommunications Regulations of the People's Republic of China" was promulgated and implemented by the State Council Decree No. 291 on September 25 this year. This regulation is China's first comprehensive administrative regulation on the telecommunications industry. Its promulgation has ended the state in which the telecommunications industry in China is basically unreliable, marking the reform and development of the telecommunications industry in China has entered a new historical stage.
In the past two years or more, according to the decisions of the Party Central Committee and the State Council, China has timely carried out telecommunications reforms with the main objectives of separating government from enterprises, eliminating monopolies, and introducing competition. At present, there are six national telecommunication companies operating basic telecommunication services in China. More than 3,000 companies have engaged in Internet-related services and other value-added telecommunications businesses. The competition pattern of China's telecommunications market has taken shape.
After the telecommunications reform and reorganization, the diversified competition pattern has accelerated development and improved services, but at the same time, it has also caused a qualitative change in the government's tasks and nature in managing telecommunications. The original management methods and management methods mainly based on administrative methods are no longer applicable, and the transition to legal governance must be realized as soon as possible. In particular, with China's entry into the WTO, China's telecommunications market will accelerate its opening to the outside world and integrate with international standards. The situation of the telecommunications market will become more complicated, and the government's task of supervising the telecommunications industry will become more difficult.
Before the new telecommunications regulations were promulgated, due to the lack of legal guarantees, many problems that could not be ignored have emerged in the telecommunications market: the pattern of fair competition has not yet been formed, and telecommunications companies that have dominated the market can also use their network advantages to curb competitors. Even the unauthorized interruption of the interconnection and communication caused the other party's communication service to be interrupted; the irregular operation of telecommunications companies will harm the legitimate rights and interests of consumers; some units and individuals construct unauthorized infrastructure facilities without authorization, causing repeated construction, or operating telecommunications services or even international telecommunications services without authorization Some foreign businessmen ignored my current policy and even surpassed the WTO agreement to start telecommunication business in our territory; some users have irregular consumer behaviors, and a few people use telecommunication networks, especially the Internet, to engage in activities that endanger national security and social public interests. In the new environment of separation of government and enterprise and diversified market competition, if there is no sound legal system and administrative management alone, these problems will not only be solved, but will also become more and more severe. In order to establish an orderly competitive market environment and ensure the sustainable and healthy development of the telecommunications industry, the introduction of the Regulations is imperative.

Key principles of the Regulations

: Protecting competition to promote technological progress. It should be said that any law and regulation has its inclination principle, and it has elements of what to protect and what to restrict. The principles of the Telecommunication Regulations should be said to be clear, that is, to protect fair competition, prevent monopolies, and promote development. In summary, the Regulations embody the following four principles:
(I) Implement the principles of separation between government and enterprises and fairness and justice. The "Regulations" straighten out the relationship between the government and enterprises. After the government and enterprise were separated, the telecommunications authority and each telecommunications company were separated from the economic relationship and administrative affiliation. Its task is to stand on the height of social and public interests, formulate rules openly, fairly, and justly, and be a good judge. Telecom companies are the main players in market competition. They must operate in accordance with the law, compete fairly, and accept government supervision and inspection.
(2) Embody the principles of protecting competition and promoting development. The "Regulations" on the one hand create a relatively loose policy environment for new telecommunications companies to enter the market, and on the other hand stipulate the obligations of telecommunications companies that have dominated the market to ensure interoperability, equal access, and provision of network element split sales. Restrict their use of first-mover advantage and crowd out competitors' unfair competition behavior.
(3) Reflect the requirements of contemporary communication and information technology progress. The "Regulations" adopted the International Telecommunication Union's definition of "telecommunications" and international common practices, and included radio and television transmission networks, computer Internet, and related services into the scope of telecommunications regulation, reflecting the development of contemporary communications and information technology advances Direction, in order to achieve the integration of three networks of telephone, computer and television and business, and promote the network of information, providing a legal basis.
(4) Considering international standards, it is forward-looking. The "Regulations" draw lessons from the experience of foreign telecommunications legislation and adopt a relatively common practice of telecommunications regulation in developed countries after the introduction of competition. For example, the auction of the basic telecommunication business license and the allocation of scarce telecommunications resources is adopted; the adjustment of the basic telecommunication business tariffs is adopted by the hearing method; the telecommunications business classification clearly lists the network elements for lease and sale, and provides the network to the basic telecommunications enterprises Element unbound sales are required.
People's Daily (Eleventh Edition, October 23, 2000)